Wynn’s Reports $657,000 for 3rd Quarter Earnings

Citing increased sales costs and lower profit margins, Wynn’s International Tuesday reported sharply reduced earnings on a slight sales increase for the third quarter and nine months ended Sept. 30.

The Fullerton automotive products manufacturer had third quarter earnings of $657,000, down 85% from earnings of $4.4 million a year ago. Third-quarter 1984 results included a one-time gain of $2.6 million in “forgiveness” of federal taxes dating back to 1972 as a result of change in tax laws.

Earnings for the nine months were $3.1 million, down 62.7% compared with earnings of $8.3 million during the first nine months of 1984.

Revenues for the quarter were up 11% to $59.2 million, compared with $52.5 million a year ago. For the first nine months of 1985, revenues were $172.1 million, up 4% from $165.5 million in 1984.

The modest sales increase during the quarter was offset by higher sales costs and intense competition, which forced Wynn’s to reduce prices to retain market share, said Roberto Martinez, the company’s controller. “Business is good,” he said. “Profits are not good.”